Holding company to control state-owned energy assets

  • Published: 10 August 2007 15:00
  • Last Updated: 10 August 2007 15:00

Bahrain is to create a $2,600 million holding company that will take control of all state-owned energy assets in a move designed to reinvigorate the country's oil and gas sector.

The new company, oper­ating under the supervision of the National Oil and Gas Authority (Noga), will manage the government's holdings in a series of local companies, including its 100 per cent stake in Bahrain Petroleum Company (Bapco), 75 per cent in Banagas, 60 per cent in Bahrain Aviation Fuel Company (Bafco) and a one-third stake in Bahrain Petrochemical Industries Company.

Bahrain's Minister of Oil and Gas Affairs Abdul Hussain Mirza says the new authority will invest in the country's oil and gas industry, establish new companies and take stakes in domestic and international projects.

A Bahrain oil executive tells MEED that while the new company will still be linked to Noga, it will in effect operate as a stand­alone company.

'The idea behind this is to cut down some of the bureaucracy, allowing Bahrain to move more quickly with the international market,' he says. 'We are seen as too slow in some circles.'

The executive adds that the holding company will look to open offices in several 'prominent' international locations and is aiming to develop joint venture partnerships. Mirza is expected to chair the new authority.



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